Property Valuation
Functional obsolescence refers to:
APhysical wear and tear on a building
BA loss in value due to neighborhood decline
CA loss in value due to outdated design or features within the property✓ Correct
DThe age of a building
Explanation
Functional obsolescence is a loss in value due to outdated design, poor floor plan, or features that no longer meet current market standards (e.g., only one bathroom in a 5-bedroom home).
Related California Property Valuation Questions
- The principle of 'regression' in real estate states that:
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